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Alex787 [66]
2 years ago
6

The Tangier Company is considering eliminating the following product line: Product AXP Sales $ 49,000 Less variable costs: Raw m

aterials 29,500 Direct labor 8,600 Contribution margin $ 10,900 Less fixed costs: Production costs allocated to products 16,800 Profit (Loss) $ (5,900 ) What amount of cost is avoidable if Tangier outsources production of this product
Business
1 answer:
sveticcg [70]2 years ago
4 0

Answer:

$38,100

Explanation:

For avoidable cost, they are example of relevant cost. When a decision is taken , some costs are incurred in connection with such decision, they are known as avoidable cost.

The direct costs associated with a decision to produce are avoidable costs, which entails that such costs will not be incurred should Tangier company decides not to produce.

Therefore, the avoidable cost of Tangier is

= Raw materials cost + Direct labor cost

= $29,500 + $8,600

= $38,100

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At the beginning of Year 1, the company's inventory level was stated correctly. At the end of Year 1, inventory was overstated b
Furkat [3]

Answer:

$5,000 ; $2,550

Explanation:

The computation is shown below:

For net income in year 1

= Reported net income + overstated inventory amount

= $3,000 + $2,000

= $5,000

For net income in year 2

= Reported net income - understated inventory amount

= $3,000 - $450

= $2,550

Therefore, the net income in Year 1 and in Year 2 is $5,000 and $2,550 respectively.

5 0
3 years ago
Select the four challenges facing ebusiness.
AlekseyPX

Answer:

Adhering to taxation rules, Ensuring consumer protection, Identifying limited market segments,  Managing consumer trust

Explanation:

E Business is a business having major or all of its transactions, on internet medium. Eg : E Commerce (Online shopping) businesses, Online educational courses businesses.

Audio Podcasting & Video-Conferencing are not E Businesses challenges. As these are their expertise areas, being an online business. Also, the user flexibility they offer is inherent USP of online businesses. Similar is the case for content management systems.

However, lacking physical existence in markets, face to face interaction with customers : They face challenges like - identifying limited market segments, consumer trust & consumer protection. Also, all their variant transactions (with different tax slabs) being online, the return policies - might make taxation rule adherance also a potential challenge for them.

4 0
3 years ago
Concord Company uses the FIFO method to compute equivalent units. It has 4000 units in beginning work in process, 20% complete a
Andrej [43]

Answer:

67,840 units

Explanation:

The computation of the equivalent units for material by using the FIFO method is shown below:

<u>Particulars       Unit       Percentage completion   Equivalent units</u>

Opening

inventory       4,000 units     50%                          2,000 units

Completed

& transferred

(67,000

- 5,800)        61,200 units    100%                         61,200 units

Closing  

inventory      5,800 units      80%                         4,640 units

Total                                                                       67,840 units

8 0
3 years ago
The numerator of the return on common stockholders' equity is_____________. a.income before income tax b.operating income minus
elena-s [515]

The numerator of the return on common stockholders' equity is net income minus preferred dividends.

Option d

<u>Explanation:</u>

Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.

<em>Use of return on equity:</em>

  • Isolates common equity returns
  • Can be used to evaluate dividends
  • Evaluates the use of capital by the management

It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.

That is, \text { Net income }-\text { Preference dividends }=\text { Equity available for common stockholder }

Hence, net income minus preferred dividends is the right answer.

3 0
3 years ago
Which component of a service is the ability to perform the service dependably, accurately, and consistently?
Elena-2011 [213]
Good treatment for customer,well coming of the customer,to provide quality surviec
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6 0
3 years ago
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